Half-year Report

Anglesey Mining plc

Half yearly report for the six months to 30 September 2024

Chairman’s Statement and Management Report

During the half year period, we continued to progress our primary asset at the Parys Mountain Cu-Zn-Pb-Ag-Au VMS deposit in Anglesey, North Wales.

We reported the assay results from the third and final hole in the Northern Copper Zone (NCZ) drilling program. NCZ003 intersected both broad zones of mineralisation and multiple higher-grade zones. All three holes in the program - NCZ001 NCZ002 and NCZ003 - delivered some exceptional high-grade copper intersections within broad thicknesses of mineralisation up to 100m wide. The results continue to support our view that the NCZ provides significant upside for the Parys Mountain project, over and above the 5 million tonne resource contribution included within the 2021 Preliminary Economic Assessment.

An important project milestone was reached with the formal submission on 31 July 2024 of the Parys Mountain Mine Environmental Impact Assessment (EIA) Scoping Report to the North Wales Minerals and Waste Planning Service as part of a formal EIA Scoping Opinion request. The Planning Service assesses mineral planning applications on behalf of the Isle of Anglesey County Council and other County Councils within the North Wales Region.

The Scoping Report forms part of the first stage in the EIA process and comes after almost two years of extensive studies and work by the Anglesey team on site. Cumulative expenditure on the EIA process in that timeframe is almost £300,000. The scoping report sets out the project’s perceived impacts, specifically identifying any crucial and significant impacts which will be assessed as part of the final EIA report, the compilation of which will require further environmental and ecological work. It should be noted that mining at Parys will be carried out by underground methods; there are no plans for an open pit or opencast mine extraction works.

Post period end, in October 2024, responses were received to the Scoping Report from each of the statutory and specialist consultees and subsequently in December a draft Scoping Opinion has become available. It was pleasing to note that the responses were broadly in line with our expectations. Formal feedback from the Planning Service is keenly awaited.

We were pleased to note that zinc has now been added to the UK Critical Minerals List, Anglesey considers the classification of zinc as a critical mineral to be a significant positive step for the importance of its Parys Mountain resource which includes over 200,000 tonnes of contained zinc.

On governance matters, we were delighted to appoint Rob Marsden as our new CEO and to the board of Anglesey Mining in May 2024 and we welcome the technical, financial and practical experience he brings to our activities as we seek to progress Parys and optimise the iron ore investments. We were also pleased to announce the appointment of Doug Hall as a non-executive director in December 2024 and we look forward to his contributions going forward. In other board changes we were sorry to accept the resignations of Namrata Verma and Jo Battershill in September and December, respectively, but wish them both well in their future endeavours.

 

Financial

The group had no revenue for the period. The loss for the six months to 30 September 2024 was £311,052 (2023 comparative period £604,787) and expenditure on the mineral properties in the period was £125,479 compared to £174,748 in the same period in 2023. This reduction was primarily due to the reduction in Parys Mountain drilling activity. We also completed two equity placings in the period, raising approximately £635,000, with the proceeds going to support ongoing developmental work and for general working capital purposes.

Net current assets as at 30 September 2024 were £63,149 compared to net current liabilities of £135,745 at 31 March 2024.

 

Outlook

Management continues to seek to advance the company’s two key assets.   At Parys Mountain the main activity will be progressing the Planning Application, guided by the EIA Scoping Opinion when formally received.   At Grängesberg, we will continue to explore options to advance the project as well as devising proposals to optimise the ownership structure and value of Grängesberg Iron AB.   As always, the company’s activities are predicated upon raising funding which, notwithstanding the equity issuances completed during the reporting period, remains extremely challenging in the current market. In this context, we continue to actively explore initiatives with a view to supporting the cash position.

In closing, on behalf of the board of directors, I would like to thank our shareholders for their ongoing support, and to confirm that I remain confident that the assets held by Anglesey Mining will deliver significant value as they continue to be progressed over the next year.

 

Andrew King

Chairman

18 December 2024

 

Unaudited condensed consolidated income statement

 

		Notes	Unaudited six months ended 30 September 2024	Unaudited six months ended 30 September 2023
All operations are continuing			£	£
	Revenue		-	-
	Expenses		(213,575)	(476,872)
	Equity-settled employee benefits		(4,230)	(24,572)
	Investment income		2,169	800
	Finance costs		(95,384)	(104,296)
	Foreign exchange movement		(32)	153
Loss before tax			(311,052)	(604,787)
	Taxation	8	-	-
Loss for the period		7	(311,052)	(604,787)
	Loss per share
	Basic - pence per share		(0.1)p	(0.2)p
	Diluted - pence per share		(0.1)p	(0.2)p

 

Unaudited condensed consolidated statement of comprehensive income

 

Loss for the period			(311,052)	(604,787)
	Other comprehensive income
	Items that may subsequently be reclassified to profit or loss:
	Change in fair value of investment		388,683	(155,557)
	Foreign currency translation reserve		17,654	8,021
Total comprehensive profit/(loss) for the period			95,285	(752,323)

All attributable to equity holders of the company

 

Unaudited condensed consolidated statement of financial position

		Notes	Unaudited 30 September 2024	31 March 2024
			£	£
Assets
	Non-current assets
	Mineral property exploration and evaluation	9	16,976,775	16,851,296
	Property, plant and equipment		204,687	204,687
	Investments	10	1,793,417	1,404,734
	Deposit		128,918	126,752
			19,103,797	18,587,469
	Current assets
	Other receivables		40,871	50,256
	Cash and cash equivalents		283,295	219,685
			324,166	269,941
Total assets			19,427,963	18,857,410
Liabilities
	Current liabilities
	Trade and other payables		(261,017)	(405,686)
			(261,017)	(405,686)
	Net current assets/(liabilities)		63,149	(135,745)
	Non-current liabilities
	Loans		(3,961,930)	(3,913,973)
	Long term provision		(50,000)	(50,000)
			(4,011,930)	(3,963,973)
Total liabilities			(4,272,947)	(4,369,659)
Net assets			15,155,016	14,487,751
Equity
	Share capital	11	10,346,764	9,711,764
	Share premium		12,895,853	12,963,103
	Currency translation reserve		(71,935)	(89,589)
	Retained losses		(8,015,666)	(8,097,527)
Total shareholders' funds			15,155,016	14,487,751

All attributable to equity holders of the company

 

Unaudited condensed consolidated statement of cash flows

 

		Notes	Unaudited six months ended 30 September 2024	Unaudited six months ended 30 September 2023
			£	£
Operating activities
	Loss for the period		(311,052)	(604,787)
	Adjustments for:
	Investment income		(2,169)	(800)
	Finance costs		95,384	104,296
	Share based payments charge		4,230	24,572
	Shares issued in lieu of salary		-	50,000
	Foreign exchange movement		32	(153)
			(213,575)	(426,872)
	Movements in working capital
	Decrease/(increase) in receivables		9,385	(3,719)
	Increase in payables		4,041	58,774
Net cash used in operating activities			(200,149)	(371,817)
Investing activities
	Investment income		3	800
	Mineral property exploration and evaluation		(274,755)	(165,062)
	Investment		-	-
Net cash used in investing activities			(274,752)	(164,262)
Financing activities
	Issue of share capital		567,750	1,380,000
	Loan repayment		(29,207)	(150,000)
Net cash generated from financing activities			538,543	1,230,000
Net increase in cash and cash equivalents			63,642	693,921
Cash and cash equivalents at start of period			219,685	247,134
Foreign exchange movement			(32)	153
Cash and cash equivalents at end of period			283,295	941,208

All attributable to equity holders of the company

 

Unaudited condensed consolidated statement of changes in group equity

	Share capital £	Share premium £	Currency translation reserve £	Retained losses £	Total £
Equity at 1 April 2024 - audited	9,711,764	12,963,103	(89,589)	(8,097,527)	14,487,751
Total comprehensive        loss for the period:
Loss for the period	-	-	-	(311,052)	(311,052)
Change in fair value of investment	-	-	-	388,683	388,683
Exchange difference on      translation of foreign holding	-	-	17,654	-	17,654
Exchange difference on translation of foreign holdings	-	-		-	-
Total comprehensive        loss for the period	-	-	17,654	77,631	95,285
Shares issued	635,000	-	-	-	635,000
Share issue expenses	-	(67,250)	-	-	(67,250)
Equity-settled employee benefits	-	-	-	4,230	4,230
Equity at 30 September 2024 - unaudited	10,346,764	12,895,853	(71,935)	(8,015,666)	15,155,016
Comparative period
Equity at 1 April 2023 - audited	8,463,039	12,443,741	(72,138)	(6,458,303)	14,376,339
Total comprehensive        loss for the period:
Loss for the period	-	-	-	(604,787)	(604,787)
Change in fair value of investment	-	-	-	(155,557)	(155,557)
Exchange difference on      translation of foreign holding	-	-	8,021	-	8,021
Total comprehensive        loss for the period	-	-	8,021	(760,344)	(752,323)
Shares issued	1,248,725	624,362	-	-	1,873,087
Share issue expenses	-	(120,000)	-	-	(120,000)
Equity at 30 September 2023 - unaudited	9,711,764	12,948,103	(64,117)	(7,218,647)	15,377,103

All attributable to equity holders of the company

Notes to the accounts

1.   Basis of preparation

This half-yearly financial report comprises the unaudited condensed consolidated financial statements of the group for the six months ended 30 September 2024. It has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, the requirements of IAS 34 - Interim financial reporting (as adopted by the UK) and using the going concern basis. The directors are not aware of any events or circumstances which would make this inappropriate. It does not constitute financial statements within the meaning of section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for annual financial statements. It should be read in conjunction with the annual report and financial statements for the year ended 31 March 2024 which is available on request from the company or may be viewed at www.angleseymining.co.uk/accounts.

The financial information contained in this report in respect of the year ended 31 March 2024 has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified. The half-yearly results for the current and comparative periods have not been audited or reviewed by the company’s auditor.

 

2.   Significant accounting policies  

The accounting policies applied in these unaudited condensed consolidated financial statements are consistent with those set out in the annual report and financial statements for the year ended 31 March 2024. There are no new standards, amendments to standards or interpretations that are expected to have a material impact on the group's results.

The group has not applied certain new standards, amendments and interpretations to existing standards that have been issued but are not yet effective. They are either not expected to have a material effect on the consolidated financial statements or they are not currently relevant for the group.

 

3.   Risks and uncertainties

The principal risks and uncertainties set out in the group's annual report and financial statements for the year ended 31 March 2024 remain the same for this half-yearly period. They can be summarised as: development risks in respect of mineral properties, especially in respect of permitting and metal prices; liquidity risks during development; and foreign exchange risks. More information is to be found in the 2024 annual report – see note 1 above.

 

4.   Statement of directors' responsibilities

The directors confirm to the best of their knowledge that:

(a) the unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of IAS 34 Interim financial reporting (as adopted by the UK); and

(b) the interim management report includes a fair review of the information required by the FCA's Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R).

This report and financial statements were approved by the board on 19 December 2024 and authorised for issue on behalf of the board by Andrew King, interim chairman and Rob Marsden, chief executive officer.

 

5.   Activities  

The group is engaged in mineral property development and currently has no turnover. There are no minority interests or exceptional items.

 

6.   Earnings per share

The loss per share is computed by dividing the loss attributable to ordinary shareholders of £0.3 million by 442 million - the weighted average number of ordinary shares in issue during the period. The comparative figures were a loss to 30 September 2023 of £0.6m divided by 406 million shares. However where there are losses the effect of outstanding share options is not dilutive.

 

7.   Business and geographical segments

There are no trading revenues. The cost of all activities charged in the income statement relates to exploration and evaluation of mining properties. The group's income statement and assets and liabilities are analysed as follows by geographical segments, which is the basis on which information is reported to the board.

Income statement analysis

	Unaudited six months ended 30 September 2024
	UK	Sweden - investment	Canada - investment	Total
	£	£	£	£
Expenses	(187,450)	(26,125)	-	(213,575)
Equity settled employee benefits	(4,230)	-	-	(4,230)
Share based payments	-			-
Investment income	2,169	-	-	2,169
Finance costs	(88,642)	(6,742)	-	(95,384)
Exchange rate movements	-	(32)	-	(32)
Loss for the period	(278,153)	(32,899)	-	(311,052)

	Unaudited six months ended 30 September 2023
	UK	Sweden - investment	Canada - investment	Total
	£	£	£	£
Expenses	(476,872)	-	-	(476,872)
Equity settled employee benefits	(24,572)	-	-	(24,572)
Investment income	800	-	-	800
Finance costs	(99,231)	(5,065)	-	(104,296)
Exchange rate movements	-	153	-	153
Loss for the period	(599,875)	(4,912)	-	(604,787)

Assets and liabilities

`	Unaudited 30 September 2024
	UK	Sweden investment	Canada investment	Total
	£	£	£	£
Non current assets	17,310,380	633,170	1,160,247	19,103,797
Current assets	323,035	1,131	-	324,166
Liabilities	(3,922,929)	(350,018)	-	(4,272,947)
Net assets	13,710,486	284,283	1,160,247	15,155,016
	Audited 31 March 2024
	UK	Sweden investment	Canada investment	Total
	£	£	£	£
Non current assets	17,182,735	633,170	771,564	18,587,469
Current assets	268,778	1,163	-	269,941
Liabilities	(4,005,989)	(363,670)	-	(4,369,659)
Net assets	13,445,524	270,663	771,564	14,487,751

8.   Deferred tax

There is an unrecognised deferred tax asset of £1.6 million (31 March 2024 - £1.6m) which, in view of the group's results, is not considered to be recoverable in the short term. There are also capital allowances, including mineral extraction allowances, of £14.4 million (unchanged from 31 March 2024) unclaimed and available. No deferred tax asset is recognised in the condensed financial statements.

9.   Mineral property exploration and evaluation costs

Mineral property exploration and evaluation costs incurred by the group are carried in the unaudited condensed consolidated financial statements at cost, less an impairment provision if appropriate. The recovery of these costs is dependent upon the successful development and operation of the Parys Mountain project which is itself conditional on finance being available to fund such development. During the period activities were limited and in particular no drilling was taking place so the expenditure of £125,479 was significantly less than in the six months to 30 September 2023 when expenditures totalled   £679,475. There have been no indicators of impairment during the period.

 

10.   Investments

	Labrador	Grangesberg	Total
	£	£	£
At 1 April 2023	1,400,015	633,170	2,033,185
Net change during the period	(628,451)	-	(628,451)
At 31 March 2023	771,564	633,170	1,404,734
Net change during the period	388,683	-	388,683
At Unaudited 30 September 2024	1,160,247	633,170	1,793,417

Labrador – Canada

The group has an investment in Labrador Iron Mines Holdings Limited, (LIM) a Canadian company which is carried at fair value through other comprehensive income. The group’s holding of 19,289,100 shares in LIM (12% of LIM’s total issued shares) is valued at the closing price traded on the OTC Markets in the United States. In the directors’ assessment this market is sufficiently active to give the best measure of fair value, which on 30 September 2024 was 8 US cents per share (2023 – 10 US cents). As at 29 November 2024 the share price was 6 US cents per share.

 

Grängesberg - Sweden

The group has, through its Swedish subsidiary Angmag AB, a 49.75% ownership interest in Grängesberg Iron AB an unquoted Swedish company (GIAB) which holds rights over the Grängesberg iron ore deposits.

Under a shareholders’ agreement, Angmag has a reciprocal right of first refusal over the remaining 50.25% of the equity of GIAB, together with management direction of the activities of GIAB subject to certain restrictions. The shareholders' agreement has an initial term of 10 years from 28 May 2014, extendable on a year-to-year basis, unless terminated on one year's notice.

The directors assessed the fair value of the investment in Grängesberg under IFRS 9 and consider the investment’s value at 30 September 2024 to be £633,170.

 

11.   Share capital

	Ordinary shares of 1p		Deferred shares of 4p		Total
Issued and fully paid	Nominal value £	Number	Nominal value £	Number	Nominal value £
At 1 April 2023	2,952,206	295,220,548	5,510,833	137,770,835	8,463,039
Issued in the period	1,248,725	124,872,469	-	-	1,248,725
At 31 March 2024	4,200,931	420,093,017	5,510,833	137,770,835	9,711,764
Issued in the period	635,000	63,500,000	-	-	635,000
At Unaudited 30 September 2024	4,835,931	483,593,017	5,510,833	137,770,835	10,346,764

The deferred shares are non-voting, have no entitlement to dividends and have negligible rights to return of capital on a winding up.

On 28 June 2024 a placing of 415,000,000 new ordinary shares was made at 1.0 pence per share to several institutions, including two of the directors and Energold Minerals Inc. a company controlled by John Kearney the former chairman of the company, to raise a total of £415,000.

On 25 September 2024 a placing of 220,000,000 new ordinary shares was made at 1.0 pence per share to several institutions, to raise a total of £220,000.

12.   Financial instruments

Group	Financial assets classified at fair value through other comprehensive income		Financial assets measured at amortised cost
	Unaudited 30 September 2024	31 March 2024	Unaudited 30 September 2024	31 March 2024
	£	£	£	£
Financial assets
Investments	1,793,417	1,404,734	-	-
Deposit	-	-	128,918	126,752
Other receivables	-	-	40,871	50,256
Cash and cash equivalents	-	-	283,295	219,685
	1,793,417	1,404,734	453,084	396,693
	Financial liabilities measured at amortised cost
	Unaudited 30 September 2024	31 March 2024
	£	£
Trade payables	(111,723)	(293,040)
Other payables	(149,294)	(112,646)
Loans	(3,961,930)	(3,913,973)
	(4,222,947)	(4,319,659)

 

13.   Events since the period end

On 11 November 2024 a placing of 1,229,238 new ordinary shares was made at 1.0 pence per share to two suppliers of services to the company to discharge liabilities of £12,292.

On 5 December 2024 we were pleased to announce the appointment of Mr. Robert Douglas Hall as a non-executive director of the company with immediate effect and also announced Jo Battershill’s decision to step down as a non-executive director.

 

Anglesey Mining plc

 

Directors

Andrew King   Chairman

Rob Marsden   Chief executive

Douglas Hall   Non executive

 

Registered office address - Parys Mountain, Amlwch, Anglesey, LL68 9RE

Phone 01407 831275        Email [email protected]

Registrars   Link Group, 29 Wellington Street, Leeds, LS1 4DL

Share dealing phone 0371 664 0445     Helpline phone 0371 664 0300

Company registered number 01849957

Web site   www.angleseymining.co.uk           

Shares listed     AIM - AYM

 

CONTACT:

For further information, please contact:

Anglesey Mining plc

Rob Marsden, Chief Executive – Tel: +44 (0)7531 475111

Davy

Nominated Adviser & Joint Corporate Broker

Brian Garrahy / Daragh O’Reilly – Tel: +353 1 679 6363

Zeus 

Joint Corporate Broker

Katy Mitchell / Harry Ansell – Tel: +44 (0) 207 220 1666

LEI: 213800X8BO8EK2B4HQ71